Canadian stocks: Tilray, Canopy light up the cannabis sector and Bausch cut in half by US court ruling
VSCanadian stocks rose Thursday, following their southern counterparts while remaining busy with their earnings reports to digest, and they kept a close eye on North American economic data.
The S&P/TSX Composite Index ended the day up 202.15 points, or 1.05%, at 19,456.71.
It wasn’t all good news, like Bausch Health (AC: BHC) shares plunged more than 50% before it was halted. The suit responded to a Delaware federal district court judge’s ruling that certain patents for its irritable bowel syndrome treatment Xifaxan are invalid.
“We are disappointed with today’s development. We strongly disagree with any finding that our patents are invalid and intend to appeal any such order,” said Thomas Appio, Chief Executive Officer. of Bausch. “As a leader in gastrointestinal health, the protection of our intellectual property is critical to our ability to continue to develop innovative therapies. We intend to vigorously pursue all available options to challenge any final decision while continuing to drive growth and innovation for our XIFAXAN franchise.
The shares were trading at their lowest closing price since 1995, when they were halted.
Canadian Pacific Railway (CA:CP) said high fuel costs resulted in a loss for the company despite an increase in revenue. Its shares closed up 1%. He said grain shipments were improving as the world grappled with shortages and export problems related to Russia’s war on Ukraine.
To say that they seemed to improve. The shares closed up 1.03%.
Canadian Pacific Railway Ltd. said Thursday that profits fell in the second quarter despite revenue growth beating analysts’ expectations.
The company said it continues to make progress with its combination with Kansas City Southern (United States: KSU), which remains subject to the approval of the US Surface Transportation Board.
Among other actions, Cenovus (AC: CVE) rose nearly 4% to $24.56 after posting well above peer-to-peer results a year ago. a 3.94% gain to $24.56 after reporting soaring second-quarter revenue and net profit on the back of high oil prices. He added that he had been protected from high inflation exposure due to his long-term contracts.
Shares of Wheaton Precious Metals rose 1.42% in the mining sector for their third consecutive gain despite the recent drop in bullion.
Canadian cannabis stocks also caught fire. Producer shares canopy growth (CA: WEEDS) climbed almost 5% today. And, Tilray Brands (AC: TLRY) rose in Toronto more than 11% after it said revenue rose 8% to $153.3 million, while a non-cash of $378.2 created a loss. But the company expects $70 million to $80 million in adjusted EBITDA charges of $100 million in the period, which resulted in a loss. Looking ahead, Tilray said it expects to generate between $70 million and $80 million of Adjusted EBITDA and have positive free cash flow in its operating bus with positive cash flow this year. .
And CEO Irwin Simon added sweetener when he told the Wall Street Journal after the results that Germany, which legalized marijuana, could be a big market opportunity for Tilray, worth up to $1 billion. of dollars. It already has a twenty percent market share in Germany. “We need to see an EU country move from adult use [perspective] before we see a domino effect among the rest of the countries,” Simon told the Journal.
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